PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2023

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 6 — PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Miners	$	95,411	$	71,114
Construction in process		35,676		32,360
Leasehold improvements		29,970		29,880
Equipment		7,778		7,208
Deposits on miners		2,680		57,626
		171,515		198,188
Less: accumulated depreciation		(12,100)		(6,667)
	$	159,415	$	191,521

The Company capitalizes a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and is depreciated over the same period as the related asset. Capitalized interest costs were $1.0 million and $760,000 for the three months ended March 31, 2023 and 2022, respectively.

Depreciation expense was $5.4 million and $4,000 for the three months ended March 31, 2023 and 2022, respectively.